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1、The Second Wave|Resilient,Inclusive,Exponential Fintechs1The Second Wave Resilient,Inclusive,Exponential FintechsSEPTEMBER 2023The Second Wave|Resilient,Inclusive,Exponential Fintechs2The Second Wave|Resilient,Inclusive,Exponential Fintechs3Boston Consulting Group partners with leaders in business a
2、nd society to tackle their most important challenges and capture their greatest opportunities.BCG was the pioneer in business strategy when it was founded in 1963.Today,we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to
3、 grow,build sustainable competitive advantage,and drive positive societal impact.Our diverse,global teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change.BCG delivers solutions through leading-edge management consulting,technolog
4、y and design,and corporate and digital ventures.We work in a uniquely collaborative model across the firm and throughout all levels of the client organization,fueled by the goal of helping our clients thrive and enabling them to make the world a better place.Global Fintech Fest(GFF)is the largest fi
5、ntech conference,jointly organized by the National Payments Corporation of India(NPCI),the Payments Council of India(PCI),and the Fintech Convergence Council(FCC).With GFF,the aim is to provide a singular platform for fintech leaders to foster collaborations and develop a blueprint for the future of
6、 the industry.Over the past three years,GFF has demonstrated its pivotal role by showcasing a 360-degree view of the fintech ecosystem and its ability to drive sustainable global progress by virtue of its transformative potential.Being an event of global stature,GFF is a platform where policymakers,
7、regulators,industry leaders,academics,and all major Fintech ecosystem stakeholders converge once a year to exchange ideas,share insights,and drive innovation.BCG is the official thought leadership partner for GFF 2023.ForewordAmidst an intricately uncertain and complex global macroeconomic landscape
8、,a polycrisis fueled by the pandemic,socio-political tensions,surging interest rates,inflation,currency fluctuations,and tapering growth has emergeda rare,complex,once-in-a-generation challenge.As we endeavor to re-imagine the Financial Services landscape we look to rebuild the balance sheets of ind
9、ividuals,companies and nations,and Fintechs would have a key role in making it more efficient and equitable.It is within this context that GFF 2023 gains significance.GFF aspires to take a pivotal position in solving key global financial ecosystem challenges.We have convened the brightest minds and
10、the most passionate hearts in Global Fintech industry in Mumbai from September 5-7,2023 to debate and design the blueprint of the future.The theme of GFF(below)underscores the need for collaboration(global,fintechs as well as incumbents)and articulates the key imperatives as we shape the future of F
11、inancial Ecosystem globally and in India:We envisage the future growth to be more equitable and resilient by design,to be able to recover quickly from future black swan events.We also strive to bring sustainability from concept to action as we take responsibility for our future.Building a resilient
12、financial ecosystem requires deep collaboration between global governments,financial institutions,investors and consumers to create a strong and sustainable financial future;dovetailed efforts of Incumbents and Fintech players would be critical to catapult the economy from surviving to thriving.Indi
13、a taking up the G20 Presidency marks the beginning of“Amritkaal”starting from the 75th anniversary of its independence to its centenary.With its pioneering role in the Financial space(global leader in digital payments,large-scale inclusion program Jan Dhan Yojna etc.),India is uniquely positioned to
14、 be a lighthouse and lead the world in this journey,with the Fintech ecosystem playing a central role.GFF 2023 aims to be the largest Fintech festival to celebrate the success of the industry,to mentor,grow and catalyze the Fintech ecosystem to power Indias growth to a$30+trillion developed economy
15、by 2047 and to attract foreign capital to give a thrust to the Indian growth story.Global collaboration for a responsible financial ecosystem:Inclusive.Resilient.Sustainable.You have to dream before your dreams can come true.Dr.A.P.J.Abdul KalamChairman Axilor Ventures,Co-founder Infosys,and Chairma
16、n Advisory Board,GFF 2023Kris Gopalakrishnan4The Second Wave|Resilient,Inclusive,Exponential Fintechs5The Second Wave|Resilient,Inclusive,Exponential FintechsForewordMD and CEO,National Payments Corporation of India,and Advisory Board Member,GFF 2023Dilip AsbeInnovation stands as the cornerstone of
17、Indias remarkable progress,propelling the nation towards new horizons.As we forge ahead,innovation remains our compass to enable empowerment of our citizens,and fuel economic growth.Fintechs are playing a leading role in this journey.The future of fintech holds significant promise.Globally,fintech r
18、evenue is projected to experience an impressive five-fold surge,ready to surpass$1.5 Trillion by 2030.Furthermore,Indias standing as a fintech powerhouse adds to this narrative;not only does it rank 3rd in terms of the number of Fintechs and Fintech Unicorns,but it also has the potential to achieve$
19、190 Billion in revenues by 2030.This success story is underpinned by a harmonious blend of regulatory support and pioneering ventures,both bolstered by a robust Digital Public Infrastructure.Key innovations,such as UPI,Account Aggregators,and the Open Network for Digital Commerce(ONDC),have interwov
20、en a rich tapestry of accessible financial services,holding the potential to improve the lives of millions.As this growth journey unfolds,fintech leaders remain steadfast in their pursuit of sustainable growth,exemplifying a strategic focus on long-term success.UPI,orchestrating 10,000+transactions
21、per second,is now a global exemplar.UPIs journey signifies financial inclusivity and efficiency.The Indian payments landscape is set to further evolve with innovations like Offline UPI Payments,Conversational Payments and Credit Card on UPI,which have the potential to redefine financial inclusion.In
22、dian travelers can now seamlessly use their UPI apps for payments in global markets.We are also working towards enabling our diaspora,30 Million Indians across the world,to efficiently remit money back to their home country.At the Global Fintech Fest 2023,as we embark on a journey to redefine the wo
23、rld of finance,this report serves as a pivotal guide,offering actionable insights to drive transformative change.As we stride forward,our unwavering commitment to drive the fintech revolution and reshape the realm of possibilities stands stronger than ever.The Second Wave|Resilient,Inclusive,Exponen
24、tial Fintechs6ForewordIn the tapestry of history,Indias role as a beacon of thought leadership is unmistakable.Through the annals of time,this ancient land has nurtured minds that illuminated the world across myriad domains.Aryabhatta and Brahmagupta engraved their names in the chronicles of mathema
25、tics and astronomy,while Charaka and Sushruta crafted an indelible legacy in the realm of medicine.Chanakyas political philosophies echoed through generations.Indian Yoga has,for millennia,guided humanity towards holistic well-being.Yet,amid the grandeur of yesteryears,we found ourselves on a diverg
26、ent trajectory during the past two centuries.However,a phoenix does indeed rise from its ashes.The last decade stands testament to Indias resolute spirit as it navigates an inspiring resurgence,reversing the course of history.Our Digital Public Infrastructure is now a global exemplar.The laudable ac
27、hievements of the Mangalyaan and Chandrayaan missions have propelled India to newer heights in space exploration.The Indian Premier League(IPL),now a decacorn,proudly claims its place as the worlds second most valuable league.HDFCs ascent into the global top 10 banking echelons reiterates our mettle
28、.India is already the 3rd largest Fintech ecosystem globally.As we fortify our position as a world leader,the Global Fintech Festival(GFF)emerges as our clarion call to forge ahead on the path of thought leadership.With over 800 speakers and more than 50,000 delegates,GFF is set to be the largest Fi
29、ntech forum globally.At the heart of this event lies our annual flagship report,an oracle that seeks to ignite thought leadership by unraveling the latest fintech trends spanning continents and industries.It lays bare bold recommendations for shaping a Fintech Nation,one that could stand tall as a t
30、hought leadership superpower.This report,a testament to our collective vision,shall be renewed annually to mirror the evolving priorities of our financial ecosystem and the nation at large.Herein lies an unprecedented opportunity for Indias financial ecosystem to emerge as the knowledge capital of t
31、he world.As we conclude,heartfelt gratitude extends to each contributor,partner,and visionary who has illuminated this journey,shaping our shared destiny.In navigating the intersection of technology and finance,lets heed the clarion call to champion sustainability,innovation,and shared prosperity.Ch
32、airman,Fintech Convergence Council Chairman Emeritus,Payments Council of India Advisory Board Member,GFF 2023Navin SuryaIntroductionWe are proud to present this years edition of the flagship report for Global Fintech Fest.The report brings to its readers three salient features categorized into chapt
33、ers:Global Fintech Trends Detailed unpacking of the global landscape through numbers and trends Voice of the Industry A temperature check of the priorities of founders and senior leaders in Indian Fintechs Blueprint of a Fintech Nation Sharp perspectives on the building blocks of a Fintech nation In
34、 the first chapter we describe how Fintech activity is trending across different regions,Fintech segments and over different periods of time.Its a data-rich chapter which gives its reader a clear view of trends in revenues and capital flows across the three dimensions of region,segment and time peri
35、od.It also offers some thought-provoking projections and scenarios for the future along with some concrete benchmarks to support those projections.The second chapter provides unvarnished views of what is on the mind of the Fintech industry in India.Read this chapter to find the top priorities of the
36、 founders their ambitions,threats and opportunities.It also provides a view of how these have evolved over time indicating the rising maturity of the sector.The third chapter is a bold take on what it means to become a Fintech nation.We use India as a template to imagine such a possibility.The chapt
37、er talks about concrete and bold ideas that can unleash the power of Fintechs and make sure we create a vibrant,inclusive and fulfilling environment for all stakeholders.The blueprint can be extrapolated to many nations and thus lay the foundation for Fintech World.The key will be to find areas to c
38、ooperate and areas to constructively compete to drive innovation and efficiency.We have drawn inspiration from BCGs work with its clients globally.We have spoken to multiple thought leaders to validate our ideas and also seek inspiration.By combining our experience and ideas with hard data and analy
39、sis,we hope to have provided the readers of the GFF flagship report with high quality food-for-thought whether one is a founder,investor,regulator or simply an interested observer.We look forward to your feedback and add to the depth and diversity of thoughts in subsequent editions.APAC Fintech Lead
40、,Managing Director&Partner,BCGYashraj ErandeThe Second Wave|Resilient,Inclusive,Exponential Fintechs7Table of Contents010203Global Fintech TrendsGlobal Fintech revenues will reach$1.5 Trillion by 2030,with APAC and NAMR emerging as major hubs.Digital Payments and Lending will dominate,while Neo Bank
41、ing,InsurTech,and Financial Infra will experience the fastest growth.12-33Voice of the IndustryIn India,85%of Fintech CXOs believe that investors are now prioritizing sustainable growth with a focus on profitability.Fintechs are reducing marketing costs and customer acquisition costs instead of dela
42、ying expansion.Focus on collaboration rather than competition.Indian regulatory framework is being perceived favorably,with an ask for greater clarity and consistency.34-47Blueprint of a Fintech NationIndia is already on a journey to becoming the Fintech Nation(#3 in terms of deal volume,number of f
43、intechs and number of unicorns).Needs to catch-up on four dimensions Fintech for all Indians,driving investments in tech enablers,financially viable Fintechs,and India for the world to realize full potential.48-659 9The Second Wave|Resilient,Inclusive,Exponential FintechsExecutive Summary0102030405T
44、he data and trends in the report can be interpreted and summarized in 10 key messages.10The Second Wave|Resilient,Inclusive,Exponential FintechsFrom heady highs to planting feet firmly on the ground.Covid-19 and its aftermath has been a deeply clarifying journey for Fintechs.Fiscal prudence,sustaina
45、ble differentiation,high quality governance,resilience are all phrases finding favor amongst Fintechs.Valuations are mean-reverting and flow of funding reflects the change in regime.From incremental to foundational.Data clearly shows that investment appetite in Critical and Emerging Technologies(CET
46、)which can create long term advances in financial services(and beyond)as well as Financial infrastructure is on the rise.This means we are seeing innovation at the substrate level of finance beyond just driving innovation in use cases.Both are important.From novelty to necessity.For incumbents,worki
47、ng with Fintechs was optional.Now we cannot conceive any major financial journey or product that is not touched by Fintechs.We are seeing intricate journeys emerge with more than two dozen integrations with Fintechs.Such integration unlocks operating efficiency,customer convenience and employee expe
48、rience.Private innovation on public infrastructure.Digital Public Infrastructure(DPI)approach has been a significant innovation of our times.The DPI playbook is much more nuanced than just technology.The playbook allows population-scale financial infrastructure to be built by enabling consensus and
49、alignment amongst stakeholders,patient long term investments and standards to evolve through protocols.Once DPI is ready,private innovation which has very different risk and return appetite can take over and drive growth.From David vs.Goliath to Better Together.Direction of flow of revenue,regulatio
50、n and capital suggests that Fintechs are increasingly finding avenues to complement or collaborate with incumbents.Consequently,across regions depending on local maturity of the financial services stack,Fintechs are either filling a void or teaming up through B2B plays.This is resulting in very inte
51、resting regional nuances.Note:Throughout this document,unless explicitly stated otherwise,the reference to years pertains to calendar years11The Second Wave|Resilient,Inclusive,Exponential Fintechs06From risk capital of one color to a rainbow of capital providers.The diversity in Fintech ideas that
52、need to get funded is immense.Especially in APAC and high growth countries like India which are becoming the center of gravity for Fintechs.For a range of ideas to find their appropriate match in terms of risk capital,it is absolutely critical to build much greater diversity in risk capital.We find
53、this lacking in todays environment.India may need to consider unlocking patient pools of capital through a special purpose Sovereign Wealth Fund(SWF)structure.08Crossing the bridge from private markets to public markets will be non-trivial.A simple analysis of the amount of capital required in India
54、n public markets to support reasonable liquidation of current Indian unicorns through IPO over the next 5-6 years shows that the liquidity may be just about adequate or possibly below adequate.We believe founders and boards should plan sufficiently for IPO.The report offers a simple checklist.Easier
55、 said than done.One investor we interviewed asked,“Can India afford more unicorns if we cant give them exits?”07The age of sweating the asset and smart experimentation.Our survey and interviews with founders and CXOs in Fintechs clearly point out that we are entering a phase of sharp focus on profit
56、ability and self-funded growth.This is manifesting in the form of greater focus on sweating the asset and franchise that has already been built instead of running more“science”experiments.0910 x challenge on CET.Our analysis shows that investment in Critical and Emerging Technologies(CET)such as AI,
57、Cloud,Quantum,Blockchain,high speed internet,etc.,can unleash innovation and productivity enhancement in the ecosystem.Relative to the investment made by India in the last decade,the coming decade needs 10 x more investment under conservative assumptions.That could be greater than$100Bn.10India(blue
58、print)for the world.The financial technologies ecosystem in India has evolved in a very unique and sophisticated manner.There are three classes of players.First,the x.SP(different categories of service providers).Second,the core system providers.Third,the Digital Public Infrastructure(DPI)itself.Bec
59、ause all three have evolved in a large scale and complex ecosystem such as India,they are quite robust and mature.We believe these capabilities will cross borders to different economies either as SaaS plays or as protocols.0301Global Fintech TrendsGlobal Fintech revenues will reach$1.5 Trillion by 2
60、030,with APAC and NAMR emerging as major hubs.Digital Payments and Lending will dominate,while Neo Banking,InsurTech,and Financial Infra will experience the fastest growth.12-3302Blueprint of a Fintech NationIndia is already on a journey to becoming the Fintech Nation(#3 in terms of deal volume,numb
61、er of fintechs and number of unicorns).Needs to catch-up on four dimensions Fintech for all Indians,driving investments in tech enablers,financially viable Fintechs,and India for the world to realize full potential.48-65Voice of the IndustryIn India,85%of Fintech CXOs believe that investors are now
62、prioritizing sustainable growth with a focus on profitability.Fintechs are reducing marketing costs and customer acquisition costs instead of delaying expansion.Focus on collaboration rather than competition.Indian regulatory framework is being perceived favorably,with an ask for greater clarity and
63、 consistency.34-47The Second Wave|Resilient,Inclusive,Exponential Fintechs13Summary|Global Fintech Trends01Note:B2B2X(enabling businesses serve other businesses/customers)and B2B(enabling businesses);“Underbanked”defined as%of adults without a credit card Global Fintech revenues will see five-fold g
64、rowth to reach$1.5Tn+by 2030 APAC will become the center of gravity for Fintechs globally,along with NAMR both 3X of next best by revenue;APAC and NAMR with$600Bn and$520Bn revenue by 2030 Digital Payments and Digital Lending will attain critical mass and generate 60%of global Fintech revenue Neo Ba
65、nking,InsurTech,and Financial Infra will be exciting spaces highest growth in revenues across segments Neo Banking:Differentiated opportunity-SME Services in developed economies as one-stop shop and Retail Banking in emerging economies to cater to the unbanked/underbanked population InsurTech:Led by
66、 B2B2X(enabling businesses serving other businesses/customers)Financial Infra:Led by B2B2X and B2B models,to support the growing needs of the Financial ecosystem Global Fintech funding peaked in 2021,followed by Funding Winter in 2022,now showing recovery signs in 2023 Pre-seed/Seed Fintechs hit les
67、s harshly in Funding Winter(-3%);late stage companies hit harder(-50%)Global funding is evenly distributed across segments,but regional variations occur based on the maturity of the ecosystem Emerging geographies(APAC,LATAM and Africa)with higher share of investments in fundamental services of Digit
68、al Payments and Lending;Developed world(NAMR and Europe)with higher share of investments in WealthTech and Financial InfraThe Second Wave|Resilient,Inclusive,Exponential Fintechs14Note:Revenue amount is geographically apportioned basis HQ location of FintechSource:Reimagining the Future of Finance B
69、CG QED Report 2023;BCG Analysis2022&2030 Global Fintech revenue by geographies($Bn)5X$1,500Bn$300BnGlobal Fintech revenues to grow 5X and reach$1.5 Trillion by 2030APACNAMREuropeLATAMAfrica$90Bn$600Bn$6Bn$12Bn$42Bn$150Bn$520Bn$190Bn$125Bn$65Bn202220222030202220222022202220302030203020302030+27%+17%+
70、21%+33%+32%By 2030,APAC to become the center of gravity for Fintechs globally,along with NAMR,with 3X higher revenues than next best region;Latin America and Africa to grow the fastest,from a smaller baseGlobal RevenueThe Second Wave|Resilient,Inclusive,Exponential Fintechs15Global RevenueDigital Pa
71、yments and Lending to remain the largest Fintech segments in 2030;Neo Banking,InsurTech and Financial Infra to be fastest growing2022&2030 Global Fintech revenue by product segments($Bn)InsurTechWealthTechFinancial Infra2DigitalLendingNeo Banks&PFM1DigitalPayments$120Bn$520Bn$46Bn$13Bn$20Bn$27Bn$74B
72、n$400Bn$200Bn$155Bn$145Bn$80Bn202220222022202220222022203020302030203020302030+20%+24%+29%+29%+15%+26%1.Neo Banks&Personal Finance Management(PFM):Includes financial comparison websites,digital banks,financial educational websites&financial planning/savings solutions 2.Financial Infra:Includes core
73、platform technologies,CRM&operations solutions,data aggregation and regtech Source:Reimagining the Future of Finance BCG QED report 2023;BCG AnalysisGrowth to be driven by B2B Neo Banks catering to large underserved SME segment in developed markets and Retail Neo Banks in emerging marketsGrowth to b
74、e driven by B2B2X(enabling businesses serving other businesses/customers)Growth to be driven by 2 archetypes B2B2X(enabling businesses serving other businesses/customers)and B2B(enabling businesses)The Second Wave|Resilient,Inclusive,Exponential Fintechs16Deal volumes have waxed&waned;distribution o
75、f flow has been stable across segmentsExcept in last 6 months where funding has tilted towards Payments and Financial Infra1.Includes funding deals till June 2023 2.Personal Finance ManagementSource:BCG Fintech Control Tower;BCG AnalysisAnnual Global Fintech equity funding flow($Bn)WealthTech has st
76、eadily gained share of investments(except in 2023,due to Stripe deal)as population from emerging markets moved up the income pyramidFinancial Infra has gained share steadily to support the growing Fintech ecosystemDigital Payments received disproportionate share of investments in 2023,led by$6.5Bn S
77、tripe dealDigital PaymentsFinancial InfraInsurTechDigital LendingNeo Banks&PFM2WealthTechGlobal Fintech equity funding($Bn)Number of deals202013%15%16%17%18%20%202120%19%14%10%17%20%202221%16%16%9%20%18%2023 YTD113%13%10%9%23%32%5214285284,3256,0514,4591,143Global FundingStripe with$6.5Bn funding ro
78、und contributes to the high share of Digital PaymentsThe Second Wave|Resilient,Inclusive,Exponential Fintechs17WealthTech&Financial Infra more dominant in NAMR;Digital Payments emerging in APAC,Africa and LATAMCumulative Fintech equity funding flow 2020-23 YTD1($Bn)Digital PaymentsFinancial InfraIns
79、urTechDigital LendingNeo Banks&PFM2WealthTechGlobal11%10%11%11%15%22%23%17%16%16%13%13%21%29%18%18%18%24%21%13%19%10%8%20%20%18%26%24%Africa&LATAMAPACEuropeNAMR3%15%Fintech equity funding 2020-23 YTD1($Bn)307216073153Unpacking the capital allocation regionally shows interesting themes1.Includes fund
80、ing deals till June 2023 2.Personal Finance ManagementSource:BCG Fintech Control Tower;BCG AnalysisGlobal FundingEnabling segments like Financial Infra gaining share of investments in the shift from developing to developed economiesThe global Fintech ecosystem is still in its early stage,with varyin
81、g levels of maturity across different regions.Developing regions like APAC,Africa,and LATAM have a higher share of investments in essential services such as Digital Payments and Digital Lending.On the other hand,developed economies like NAMR,Europe are allocating a greater share of their investments
82、 towards WealthTech,catering to wealthier individuals,and Financial Infra to meet the growing demands of the financial sector.Saurabh TripathiManaging Director&Senior Partner,BCGThe Second Wave|Resilient,Inclusive,Exponential Fintechs18Fintechs need to fund growth through internal accruals vs.burn;2
83、023 looks like 2020 in terms of equity fundingfiscal discipline on the riseSources:CB Insights State of Venture;BCG Fintech Control Tower;BCG AnalysisGlobal Fintech equity funding flow($Bn)Funding amount split by quarters of calendar yearsFintech equity funding as a%of total global equity fundingGlo
84、bal Fintech equity funding($Bn)17%Q1201119%Q2201217%Q3201515%Q4201521%Q1212825%Q2214022%Q3213620%Q4213822%Q1223320%Q2222616%Q3221416%Q4221223%Q1231716%Q22310Global FundingThe Second Wave|Resilient,Inclusive,Exponential Fintechs19Later the stage of start-up,steeper has been the fall in funding1.Inclu
85、des only deals with publicly declared funding stageNote:Early Stage includes Series A&Series B deals;Late Stage includes Series C,Series D,Series E+,Private&Growth Equity DealsSource:BCG Fintech Control Tower;BCG AnalysisGlobal Fintech equity funding($Bn)by stages1Seed/AngelLess impact in pre-seed/s
86、eed deals6.66.8-3%Early Stage24.737.4-34%Late Stage2021202277.438.9-50%Market turmoil typically leads to investors pulling back and becoming more risk averse,it can be a great moment to innovate.We believe the impact of Funding Winter is lower on innovation(pre-seed/seed).Later stage companies have
87、a higher burden of proof to demonstrate strong fundamentals.Chairperson,Global Investment Management CorporationNumber of DealsAverage deal size($Mn/deal)2,9642,0692.33.21,4541,06325.723.2587385132101In earlier stages of funding,idea and team matters;in later stages,performance and metrics matterLat
88、e-Stage companies have higher burden of proof to demonstrate path to profitabilityGlobal FundingThe Second Wave|Resilient,Inclusive,Exponential Fintechs20Segment-Wise Trends20The Second Wave|Resilient,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs211.Includes
89、funding deals till June 2023 2.Point of Sale&Payment Service ProviderSource:BCG Fintech Control Tower;BCG AnalysisAnnual Global Digital Payments equity funding by segments($Bn)Cumulative Digital Payments equity funding by geographies-2020-23 YTD1($Bn)GlobalNAMREuropeAPACAfrica&LATAM$63Bn$28Bn$15Bn$1
90、5Bn$5Bn Acquiring Solutions has consistently gained share of funding enabling Payments as more verticals increase digital adoption Maturing Digital Retail Payments has dropped share of funding,with increasing maturity of leading markets Funding in developed economies(NAMR and Europe)dominated by Acq
91、uiring Solutions;limited share of investments in Digital Retail Payments as card usage and closed-loop wallets prevalent Funding in APAC/Africa currently dominated by Digital Retail Payments,as an alternative to card payments;headroom for higher funding in acquiring solutions and B2B paymentsDigital
92、 Retail PaymentsAcquiring Solutions(POS&PSP)2B2B(Corporate,SME&Cross Border)PaymentsCryptocurrency/Blockchain PaymentsOthers(Fraud,Security&Value-Added Services)2023 YTD1$9Bn41%2022$15Bn13%2020$11Bn30%18%31%30%25%30%25%24%17%10%10%10%32%37%2021$28Bn12%27%36%79%41%45%46%13%9%29%8%17%7%18%6%44%3%2%4%4
93、%1%5%5%2%3%6%12%5%Global Digital Payments|Acquiring Solutions,driven by NAMR&Europe,gaining share of investments vs Digital Retail PaymentsTotal funding($Bn)Global Funding28%The Second Wave|Resilient,Inclusive,Exponential Fintechs22Deep-Dive5 Global trends shaping the future of Digital Payments Indu
94、stry1.Independent Software Vendors 2.Account to Account 3.Real Time Payments 4.Central Bank Digital CurrencySources:BCG Global Payments Report 2022;Reimagining the Future of Finance,BCG QED Report 2023;Atlantic Council CBDC Tracker;BCG Analysis Acquisition of customers via payments and monetizing ac
95、ross other financial use cases(credit,insurance,etc.)being leveraged by Digital Payments playersPayments+model for profitable growth More and more ISVs1 emerging across verticals,leading to the need for modular and customizable payment offerings Acquiring Solutions providers(e.g.,Stripe)catering to
96、vertical-specific needs with modular architectureModular,vertical-specific solutions on the rise As demand for faster payments grows,A2A2 RTPs3 being explored in 35+countries in varying stages of development Manifold increase in online A2A transactions in key emerging economies of India(UPI)and Braz
97、il(Pix)Real-time Payments to go mainstream across economies 130 countries exploring CBDCs;30+countries driving pilots at varying levels of maturity Countries warming up to CBDCs as a tool to implement monetary policy more quickly and leapfrog RTP infrastructure requirementCBDCs4 gaining traction$20T
98、n Cross-Border payments globally incurring$120Bn transaction costs RTP Interoperability can be a game-changer in Cross-Border remittances,disrupting traditional transfer channelsCross-Border payments ripe for Fintech disruptionTrendsThe Second Wave|Resilient,Inclusive,Exponential Fintechs23Explored
99、potential architecturesand design options for issuing and distributing e-HKD36 responses to 7 problem statements issued by HKMA highlighting views on use cases,areas of concern,and design choicesEvaluated potential benefits and challenges,issuance mechanism,data protection and legal considerations39
100、 responses to 12 discussion questions introduced by HKMA.Respondents largely agreed with the potentialbenefits and challenges highlighted Selected 16 firms from financial services and technology sectors to participate in the first trial run for the e-HKD14 projects in 6 categories of potential e-HKD
101、 use cases.HKMAs e-HKD“sandbox”leveragedExperiences drawn from these projects to be shared at the upcoming Hong Kong FinTech Week in October 2023Hong Kongs strategy is a blueprint for CBDC-based innovationProject e-HKDAnnounced in June 2021HKMA(Hong Kong Monetary Authority)(Central Bank,Industry bod
102、ies,Universities,Consulting,BFSI,Fintech,Tech&PSU firms)Industry and AcademiaLaunchTechnical Whitepaper(October 2021)Policy Discussion Paper(April 2022)Pilot Programme(Launched in June 2023)04Source:E-HKD Charting the Next Steps by HKMA;BCG AnalysisDigital Payments Deep-Dive01020323The Second Wave|R
103、esilient,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs24Global Funding1.Includes funding deals till June 2023 2.Others:Includes Credit Score Management,Investment-based Crowdfunding&Donation/rewards companiesSource:BCG Fintech Control Tower:BCG AnalysisAnnual
104、 Global Digital Lending equity funding by segments($Bn)Cumulative Digital Lending equity funding by geograpies-2020-23 YTD1($Bn)GlobalNAMREuropeAPACAfrica&LATAM$46Bn$16Bn$12Bn$13Bn$5Bn Personal Unsecured Loans have consistently gained share of investments with increased availability of alternate dat
105、a,enabling catering to underserved segments Share of investments in B2B/SME Loans steadily increasing due to increased formalization globally and access to underwriting data High share of investments in Unsecured Lending in Europe(driven by the surge of BNPL players)and APAC(catering to underserved
106、segments)As the Asset-Based Lending industry matures in NAMR,next wave of growth likely from APAC,Africa and LATAM;Tokenization to be a key unlockPersonal Unsecured LoansB2B/SME LoansAsset-Based LendingOthers22023 YTD1$4Bn26%27%9%35%2022$14Bn50%30%2020$8Bn48%43%40%22%62%49%22%2021$20Bn24%23%15%10%20
107、%20%22%15%37%58%24%23%51%19%2%9%9%5%Global Digital Lending|Personal Unsecured Loans continues to capture 50%of global equity fundingTotal funding($Bn)12%14%8%8%8%The Second Wave|Resilient,Inclusive,Exponential Fintechs255 Global trends shaping the future of Digital Lending Industry Rapid growth in c
108、heckout financing led by Credit on QR(e.g.,UPI in India)BNPL companies evolving to become shopping destinations(e.g.,Klarna provides comparisons,curated content,influencer networks)Rise of Checkout Financing 2.0 70%of all lending transactions to originate beyond financial institutions Digital Public
109、 Infra(e.g.,ONDC in India)and frameworks(e.g.,PSD21,PSD3 in Europe)to accelerate the trendInvisible finance(embedded finance)to see accelerated growth Asset-backed lending to achieve breakout growth with tokenization of real-world assets Real-time disbursements basis smart contracts to drive higher
110、efficienciesBlockchain to transform Asset-backed Lending Ecosystems developing across sectors(e.g.,Healthcare,Dairy,etc.);end-to-end solutions for the ecosystem gaining traction(e.g.,MooPay uses milk pouring data to lend to dairy farmers)Ecosystem-focused lending to become mainstream Powerful use ca
111、ses emerging across underwriting,fraud controls,collections,customer service,etc.GenAI to drive next wave of innovation across the lending value chainTrends1.Payment Services DirectiveSource:BCG AnalysisThe Second Wave|Resilient,Inclusive,Exponential Fintechs261.Includes funding deals till June 2023
112、 2.Blockchain-Based Alternative Assets 3.Other WealthTech:Includes trade lifecycle management,collaboration and communication,clearing and settlement,risk&compliance,syndication&structuring&core trading techSource:BCG Fintech Control Tower;BCG AnalysisAnnual Global WealthTech equity funding by segme
113、nts($Bn)Cumulative WealthTech equity funding by geographies-2020-23 YTD1($Bn)GlobalNAMREuropeAPACAfrica&LATAM$57Bn$32Bn$11Bn$11Bn$3Bn Alternative Asset classes gaining share of investments over traditional assets with increasing interest in private markets&ESG asset classes Advisory has lost share o
114、f investments;but likely to be revamped with advent of GenAI WealthTech funding dominated by NAMR with 60%share,funding in emerging economies to grow with increasing affluence Blockchain-Based WealthTech platforms driving investor attention across geographies,with tokenization use cases on the riseT
115、raditional AssetsBlockchain-Based AA2AdvisoryAlternative AssetsOther WealthTech32023 YTD1$4Bn40%14%13%2022$18Bn7%2020$7Bn24%22%36%27%26%28%21%24%24%23%12%12%44%61%2021$28Bn9%12%21%39%41%37%34%33%15%17%17%18%9%9%18%9%7%16%15%17%17%2%2%3%0%Global WealthTech|Alternative Assets gaining disproportionate
116、investor attentionTotal funding($Bn)Global Funding19%6%The Second Wave|Resilient,Inclusive,Exponential Fintechs27Deep-Dive5 Global trends shaping the future of WealthTech industry 50%global wealth lies with HNW/UHNW individuals,served by traditional wealth managers with increasing digitization deman
117、d post-COVID Fintech capabilities critical to create seamless digital journeysHNW/UHNW underpenetrated;Incumbents partnering with Fintechs for seamless digital journeys Key thematic innovations include auto-investments,robo-advisory,gamification,micro-investment,ecosystem integrations and social tra
118、dingThematic innovations to further activate affluents/mass affluents Tokenized AAs1 like real estate with smart contracts&fractional ownership to democratize wealth market;$16 Trillion2 business by 2030Tokenization of assets to democratize investing Fintechs enabling bite-sized investments in priva
119、te markets Increasing ESG awareness and demand for sustainable investingInterest in Alternative Assets skyrocketing across economies GenAI driven advisory to take robo-advisory mainstream Hybrid robo-advisory model(human advice+GenAI powered advising)key for HNW/UHNW segmentsGenerative Advising(GenA
120、I driven robo-advisory)to drive breakout growth across segments1.Alternative Assets 2.$16 Trillion of Assets Under Management(AUM)by 2030Note:High Net Worth(HNW)-Wealth between$1Mn and$100Mn;Ultra High Net Worth(UHNW)-Wealth greater than$100MnSource:BCG Global Wealth Report 2022BCG Global Wealth Mar
121、ket Sizing;BCG Global Wealth Report 2023;BCG report-Relevance of On-Chain Asset Tokenization in Crypto WinterTrendsTokenized Alternative Assets to democratize investing,to become$16 Trillion1 business by 20301.$16Tn of Assets Under Management(AUM)by 2030Note:The analysis does not include crypto asse
122、tsSource:BCG Report-Relevance of On-Chain Asset Tokenization in Crypto WinterWealthTech Deep-DiveTokenized Alternative Assets to be a$16Tn1 business by 2030 across categoriesOn-Chain Tokenization scores significantly over traditional fractionalizationThe Tokenization ProcessThe TokenizersInfrastruct
123、ure,Car Fleets,PatentsOther Financial AssetsHome EquityOther EquityUnlisted EquityListed EquityBondsInvestments&FundsThe Second Wave|Resilient,Inclusive,Exponential Fintechs203030%19%5%2%4%4%16%20%$16Tn Drives inclusion-Enables investing in high-ticket items,listing&trading of hitherto illiquid asse
124、ts like natural resources Availability of clear transaction records and an immutable ledger of ownership rights governed by smart contacts increases accountability and transparency Better price discovery of illiquid assets,higher transaction speed at lower cost,and a central KYC system across all in
125、vestments reduce friction&improve market efficiencyAccessibility&AffordabilityTransparencyEfficiencyRegister underlying asset&configure tokenSet compliance rulesStore,manage&distribute tokensExecute corporate actionsAssemble the ecosystemAsset OriginatorTech CompaniesProtocol DevelopersPrivate Marke
126、t Exchanges28The Second Wave|Resilient,Inclusive,Exponential Fintechs29Global Funding1.Includes funding deals till June 2023 2.Property&CasualtySource:BCG Fintech Control Tower;BCG AnalysisAnnual Global InsurTech equity funding by segments($Bn)Cumulative InsurTech equity funding by geographies-2020-
127、23 YTD1($Bn)GlobalNAMREuropeAPACAfrica&LATAM$34Bn$20Bn$7Bn$6Bn$1Bn P&C and Health Insurance,with shorter policy durations continue to be the largest segments Low share of investor interest in Life Insurance;mature market globally Funding in InsurTech dominated by developed economies of Europe&NAMR w
128、ith 80%share and high interest in P&C Funding skewed towards Multi-Line Insurers in emerging economies(APAC,Africa and LATAM),owing to lower penetration across segments and lower maturity of P&C marketP&C2 InsuranceMulti-line InsuranceHealth InsuranceLife Insurance2023 YTD1$2Bn20%22%21%10%10%68%2022
129、$8Bn54%54%2020$9Bn52%52%50%29%74%16%15%15%11%2021$15Bn26%19%19%19%25%34%56%43%47%7%0%4%4%4%4%5%5%1%3%Global InsurTech|P&C continues to drive 50%of InsurTech funding,dominated by NAMR&EuropeTotal funding($Bn)The Second Wave|Resilient,Inclusive,Exponential Fintechs30Deep-Dive5 Global trends shaping th
130、e future of InsurTech industry Exponential growth in customer lifestyle&health data via wearables&consumer apps Opportunity to hyper-personalize offerings basis lifestyle requirements,risk profile,etc.Lifestyle data driven hyper-personalization Use cases established across activities like pricing,un
131、derwriting,claim settlement,fraud prevention,etc.InsurTechs offering tech enablement platforms for incumbents gaining traction Agency and banca channels to be augmented with new tech enablers GenAI use cases evolving across all stagesBionic distribution to unlock next level of productivity Players a
132、re either orchestrating their own ecosystems or participating in ecosystems led by orchestrators;Fintechs are central to these partnershipsEcosystem-driven play maturing in Insurance Demand for usage-based/episodic insurance surging due to rise in sharing economy and demographic shiftsOn-demand/Bite
133、-sized Insurance gaining prominenceTrendsSource:BCG AnalysisThe Second Wave|Resilient,Inclusive,Exponential Fintechs31Lifestyle data driven hyper-personalization a win-win proposition for insurers and consumers31Wearables now creating an explosion of customer health data that can be leveraged for hy
134、per-personalization as well as efficient underwriting,creating a win-win proposition for both customers and insurersCustomer health and activity data can be used to create unique products,with differentiated benefits based on lifestyle patternsIt also enables incentivization of healthier habits(e.g.
135、,discounts based on number of daily steps),providing the customer higher agency in his/her health plansLifestyle data from consumer appsMonitored dataDaily ActivityWearable(location,heart rate,speed,weight,calories burned,etc.)ExpensesIncomeTravel HistoryMedical HistoryLocationCloudSmartphoneFoodCon
136、sumptionFitness ActivitySleepPatternReal-time health and activity data from wearablesThe Second Wave|Resilient,Inclusive,Exponential FintechsSource:BCG AnalysisInsurTech Deep-DiveThe Second Wave|Resilient,Inclusive,Exponential Fintechs32Global Funding1.Neo Banks&Personal Finance Management:Includes
137、financial comparison websites,digital banks,financial educational websites&financial planning/savings solutions 2.Includes funding deals till June 2023Source:BCG Fintech Control Tower;BCG AnalysisAnnual Global Neo Banks&PFM equity funding by segments($Bn)Cumulative Neo Banks&PFM equity funding by ge
138、ographies-2020-23 YTD2($Bn)GlobalNAMREuropeAPACAfrica&LATAM$51Bn$21Bn$15Bn$9Bn$6Bn SME Neo Banks gaining prominence(in share of funding);B2B model shows potential for generating a scalable,sticky client base to generate steady profits Retail Neo Banks facing steep competition from banks with improvi
139、ng digital maturity,leading to reduced share of investments Retail Neo Banks with lower share of investments in NAMR as traditional banks amp up digitization;to fare better in emerging economies with headroom for financial inclusion SME Neo Banks with lower share of investments in APAC/Africa/LATAM,
140、offering opportunities for disruptionRetail Banking&PFMSME Banking2023 YTD2$2Bn48%46%2022$14Bn30%62%2020$8Bn31%41%69%59%54%41%52%70%38%40%2021$27Bn60%77%23%59%Global Neo Banks&PFM1|SME Neo Banks dominant in NAMR/Europe while Retail Neo Banks attract more funding in APAC,Africa&LATAMTotal funding($Bn
141、)The Second Wave|Resilient,Inclusive,Exponential Fintechs33Global Funding1.Financial Infra:Includes core platform technologies,CRM&operations solutions,data aggregation and regtech 2.Other SaaS:Includes supporting infra/SAAS for Digital Payments and Lending Infrastructure Fintechs 3.Includes funding
142、 deals till June 2023Source:BCG Fintech Control Tower;BCG AnalysisAnnual Global Financial Infra equity funding by segments($Bn)Cumulative Financial Infra funding by geographies-2020-23 YTD3($Bn)GlobalNAMREuropeAPACAfrica&LATAM$57Bn$37Bn$13Bn$6Bn$1Bn Blockchain and AI Infra gaining disproportionate f
143、unding share with potential to transform financial services Core platforms funding share declining;trend likely to reverse as BFSI SaaS Fintech platforms drive global digital maturity Funding dominated by NAMR with 60%share due to increased investments in next-gen technologies Nascent space in emerg
144、ing economies of APAC,LATAM&Africa with 10%Investment Increase10%Investment Increase(or)10%Investment DecreaseDigital Lending($2.9Bn)Personal Unsecured LoansAcquiring SolutionsCore Platforms&Other SaaS Regtech SaaS Retail Banking&PFM Multi-line Insurance Other WealthTech Blockchain-based Alternative
145、 Assets AdvisoryAlternative Assets Traditional Assets SME Banking CRM SaaS P&C InsuranceHealth InsuranceOthersCryptocurrency Payments B2B(Corporate&SME Payments)Digital Retail PaymentsB2B/SME Loans47%44%Other Lending5%14%3%49%37%79%77%21%71%WealthTech($0.9Bn)Neo Banks&PFM1($0.6Bn)InsurTech($0.6 Bn)F
146、inancial Infra2($0.3Bn)Digital Payments($1.4Bn)10%14%4%5%18%20%27%30%19%Asset-Based Lending4%2%The Second Wave|Resilient,Inclusive,Exponential Fintechs38Fintech CXOs believe that sustainable growth,with path to profitability,prime focus area for investors1.While deploying funds,which traits are inve
147、stors looking for?N=47Source:The Global Fintech Union Survey 2023 by BCG&GFF85%Path to Profitability79%Growth36%Compliance&Governance34%Innovation34%Founder ProfileSurveyThe VC ecosystem was very optimistic during COVID.Fintech ventures sprouted effortlessly,fueled by the convergence of innovative c
148、oncepts and excess liquidity.As the Fintech ecosystem matured,there is more burden of proof to demonstrate sustainable growth.Path to profitability is now the compass for investments.Founder,Indian Fintech(%respondents selecting below in top 3 priorities for investors)1The Second Wave|Resilient,Incl
149、usive,Exponential Fintechs39Product expansion with cost controls top priorities for CXOs1.What are the most important strategic focus areas for you and your business in next 2-3 years?N=47Source:BCG Matrix SOFTU Survey 22;The Global Fintech Union Survey 2023 by BCG&GFF2022 Product expansion&hiring t
150、op priorities with focus on“growth”2022 Priorities for Fintech CXOs(%respondents selecting below in top 3 priorities)2023 Cost reduction gaining prominence with product expansion for“sustainable growth&profitability”2023 Priorities for Fintech CXOs(%respondents selecting below in top 3 priorities)1P
151、roduct ExpansionProduct Expansion82%77%Top 2 priority areasTop 2 priority areasBottom 2 priority areasBottom 2 priority areas75%55%61%36%45%30%44%28%44%26%36%23%Hiring Right TalentHiring Right TalentImproving Customer ServiceInvestments in Tech&InfraGeographical ExpansionGeographical ExpansionIntern
152、al ControlsInternal ControlsCost ReductionCost ReductionFundraisingFundraisingSurveyThe focus of the founders has shifted from rapid expansion to increasing cash runways and strengthening the fundamentals of the company.Cost rationalization is a focus area for us in the path to profitability,since t
153、here was a lot of exuberant spending in the last few years.Co-Founder,Indian FintechThe Second Wave|Resilient,Inclusive,Exponential Fintechs40Fintech leaders driving reduction in Marketing Costs&CAC2 to achieve profitability,rather than delaying expansion plans1.What are your top areas to conserve c
154、ash in this cycle of funding winter?N=47 2.Customer Acquisition CostSource:The Global Fintech Union Survey 2023 by BCG&GFFTop 2 PrioritiesBottom 3 PrioritiesReduction in Marketing CostsDelay Expansion PlansRight Sizing/LayoffsLower Investment in InnovationReduction in CAC2 (Promotional rewards,cashb
155、acks)48%1234545%20%18%10%SurveyWhile we are committed to optimizing costs,we are not compromising on our growth plans.Founders are rather focusing on reducing marketing spends.You would have noticed lower Fintech advertising during the IPL.Founder,Indian FintechPriorities for Fintech CXOs to achieve
156、 profitability(%respondents selecting below in top 3 priorities)1Priority levers to achieve profitabilityThe Second Wave|Resilient,Inclusive,Exponential Fintechs41Fintechs and Traditional Institutions looking at each other as collaborators;however,need to harmonize ways of working to unlock full pot
157、ential1.Are you reconsidering partnerships considering recent mixed sentiments around Fintechs?N=23 2.How many Fintechs are you in partnerships with across product segments?N=23 3.Do you believe partnering with Fintechs has given/will give access to the population which you were not catering to?N=23
158、 4.What will be the biggest challenge while partnering with Incumbents?N=47 5.What will be the biggest challenge for you while partnering with Fintechs?N=23Note:Traditional Institutions include Banks,NBFCs,Asset Management&Insurance companies Source:The Global Fintech Union Survey 2023 by BCG&GFFTec
159、h maturity and ways of working biggest challenges for Fintechs in partnering with Traditional InstitutionsTraditional Institutions want to continueFintech partnershipTraditional Institutions collaborating with multiple Fintechs and gaining access to new marketsRisk management®ulatory nuances act
160、as bottlenecks for Traditional Institutions in partnering with FintechsTech MaturityWays of WorkingRegulatory Nuances4%17%9%70%5+3-51-20Number of Fintechs in Partnership60%62%72%Top challenges faced by Fintechs while partnering with Traditional Institutions(%Fintech CXOs selecting below in top 3 cha
161、llenges)4Top challenges faced by Traditional Institutions while partnering with Fintechs(%Traditional Institution CXOs selecting below in top 3 challenges)5%Traditional Institutions in partnership with Fintechs2%Traditional Institution CXOs who want to continue Fintech partnerships1%Traditional Inst
162、itution CXOs who believe that partnering with Fintechs has opened new markets for them365%91%Survey123Ways of Working40%3Risk Management 53%1Regulatory Nuances52%2The Second Wave|Resilient,Inclusive,Exponential Fintechs42Indian regulatory framework perceived to promote innovation while safeguarding
163、risks;opportunity to improve clarity and consistency1.What are the best features of the regulatory environment in your business area?N=70 2.What are the biggest pain points of the regulatory environment in your business area?N=70 3.First Loss Default GuaranteeSource:The Global Fintech Union Survey 2
164、023 by BCG&GFFIndian regulations perceived to be future oriented and pro-innovation while safeguarding systematic risk%CXOs selecting below in top 3 enablers1Opportunity to improve clarity and consistency of regulations%CXOs selecting below in top 3 pain points2Safeguards Systemic RisksUnclearFuture
165、 Oriented&Pro-InnovationInconsistentPromotes PartnershipsDoes not offer Level Playing Field53%41%44%39%33%33%112233The recent guidelines on digital lending and FLDG3 are welcome but there is lower clarity on segments like Neo Banks.Clarity and consistency would enable more Fintechs to double down on
166、 innovation and drive breakout growth.Founder,Indian FintechSurveyThe Second Wave|Resilient,Inclusive,Exponential Fintechs43%Digital Payment Fintechs offering/looking to offer Lending products to current customer base3Payment Fintechs looking at a Payments+strategy to achieve profitability1.Merchant
167、 Discount Rate 2.What are the key drivers in driving digital real time payments towards profitability in your geography?N=21 3.What use cases beyond payments have you introduced/looking to introduce monetizing payments data and consumer base?N=21Source:The Global Fintech Union Survey 2023 by BCG&GFF
168、71%52%48%33%24%19%10%Reduce Cost of TalentReduce Technology CostsReduce Promotional RewardsReduce Marketing ExpensesFavorable MDR RegimeMonetizing Captive Consumer BaseAdoption of Platform FeeDigital PaymentsFavorable MDR1 regime&monetizing captive consumer base can drive profitabilityLending prefer
169、red monetization lever in Payments+strategyTop drivers to achieve profitability(%Digital Payment Fintech CXOs selecting below in top 3 drivers)2Survey65%Vivek MandhataManaging Director&Partner,BCGFintechs,in collaboration with NPCI,have come of age in the past two years and positioned India as a glo
170、bal payments leader.In the current MDR regime,innovation and value addition on top of payments are critical for Digital Payment Fintechs.Lending is a front-running cross-sell choice.The Second Wave|Resilient,Inclusive,Exponential Fintechs44%Digital Lending CXOs who agree that FLDG guidelines are a s
171、tep in the right direction3Digital LendingExponential growth of alternate data and regulatory support to unlock further growth in digital lending;positive sentiment around FLDG11.FLDG:First Loss Default Guarantee 2.What are the requirements to improve penetration of digital lending in your geography
172、?(Select Max 3)N=46 3.New lending guidelines including FLDG cap are a step in the right direction”.What are your views on the above statement?N=46 4.Percentage calculated considering respondents selecting either Strongly Agree or AgreeSource:The Global Fintech Union Survey 2023 by BCG&GFF67%57%39%35
173、%35%30%20%New Tech for Better E2E JourneyHigher Adoption of Lending Focused DPISystemic Focus to Reduce Fraud RisksAvailability of Alternate DataRegulatory SupportStrong Collection EcosystemAccess to Lower Cost of FundsThe vision of data as the new oil is swiftly materializing for businesses,with th
174、e emergence of account aggregators.The implementation of FLDG guidelines marks a decisive stride in the right direction,ushering in a regulatory framework that promises to maintain a vigilant watch over unsecured lending.It further provides clarity after extended period of ambiguity,contributing to
175、heightened investor confidence.Founder,Indian FintechAlternate data availability coupled with regulatory support to drive digital lending penetrationNew FLDG guidelines welcomed by majority playersTop drivers to improve digital lending penetration(%Digital Lending CXOs selecting below in top 3 drive
176、rs)2Survey85%4The Second Wave|Resilient,Inclusive,Exponential Fintechs45Innovation in the Indian Insurtech landscape is being enabled by the IRDAI regulatory sandbox.However,a swifter approval process and greater flexibility,will help Fintechs to fail fast and drive innovation at scale.Opportunity t
177、o bolster InsurTech in India by enhancing IRDAI1 regulatory sandbox with faster approval and more flexibility1.Insurance Regulatory&Development Authority of India 2.Regulatory sandbox has supported growth of innovative insurance products.What are your views on the statement?N=11 3.What support is ne
178、eded to make the tests under sandbox more successful?(Select all applicable)N=11Source:The Global Fintech Union Survey 2023 by BCG&GFF64%64%55%36%36%18%Monetary SupportIncrease Applications per OrganisationFaster ApprovalsAllow More FlexibilityIncrease Premium Generation LimitIncrease Test Timelines
179、InsurTechSurvey%respondents want improvement in existing regulatory sandbox environment to drive further innovation256%Faster approval process and more flexibility required to make sandbox more successful3%InsurTech CXOs selecting below in top 3 asksThe Second Wave|Resilient,Inclusive,Exponential Fi
180、ntechs46Industry leaders believe long term prospects for Indian Fintechs remain strong;5 trends to drive growth across sectorsIncreasing share of households in middle-class and above to grow from 39%in 2019 to 50%in 2030,leading to higher demand for Financial ServicesNew opportunities in Lending,Ins
181、urance and Wealth Management space driven by faster growth in Tier 2 and beyond fueled by Increased digital connectivity Smartphone penetration Government initiatives to promote financial inclusionMindset shift of Incumbent leaders from compete to collaborate 65%of leaders want to continue Fintech p
182、artnershipNext wave of DPI initiatives to further boost fintech innovations Credit on UPI Agri stack Health stack Logistics stackSandboxes by RBI2,IRDAI3,etc.to keep the innovation momentum going UPI Lite Pay-per-use insuranceIncreasing regulatory clarity PA licensing Digital lending guidelines POSP
183、4 insurance regulationsIncreasing affluenceRise of Bharat1Partnership mindset of incumbent business leadersContinued augmentation of already best-in-class Digital Public Infrastructure(DPI)Increasing regulatory support&clarity01020304051.Bharat refers to Tier 2 regions and below 2.Reserve Bank of In
184、dia 3.Insurance Regulatory&Development Authority of India 4.Point of Sales Person Note:Aspirer+includes aspirer,affluent&elite segment with household wealth of INR 5 LPA in IndiaSource:CCI proprietary income database;The Global Fintech Union Survey 2023 by BCG&GFF;BCG AnalysisTrends46The Second Wave
185、|Resilient,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs4747The Second Wave|Resilient,Inclusive,Exponential Fintechs0301Global Fintech TrendsGlobal Fintech revenues will reach$1.5 Trillion by 2030,with APAC and NAMR emerging as major hubs.Digital Payments and
186、 Lending will dominate,while Neo Banking,InsurTech,and Financial Infra will experience the fastest growth.12-3302Blueprint of a Fintech NationIndia is already on a journey to becoming the Fintech Nation(#3 in terms of deal volume,number of fintechs and number of unicorns).Needs to catch-up on four d
187、imensions Fintech for all Indians,driving investments in tech enablers,financially viable Fintechs,and India for the world to realize full potential.48-65Voice of the IndustryIn India,85%of Fintech CXOs believe that investors are now prioritizing sustainable growth with a focus on profitability.Fint
188、echs are reducing marketing costs and customer acquisition costs instead of delaying expansion.Focus on collaboration rather than competition.Indian regulatory framework is being perceived favorably,with an ask for greater clarity and consistency.34-47The Second Wave|Resilient,Inclusive,Exponential
189、Fintechs49Summary|Blueprint of a Fintech Nation03 India is on the journey to becoming a Fintech Nation(already#3 in terms of deal volume,number of Fintechs and number of unicorns)Indian Fintech revenues to grow 35%+annually to reach$190Bn revenues by 2030 Export of India Stack to emerging nations to
190、 unlock upside potential of$60Bn revenues DPI 1.0(Aadhaar,UPI,etc.)laid the foundations of a strong Fintech ecosystem.DPI 2.0(ONDC,CBDC,Health Stack,etc.)to enable creation of a Fintech Nation Four catch-ups in Indias journey of becoming The Fintech Nation Fintech for all Indians is a national imper
191、ative 5 unlocks:Lite apps,Voice-in-Vernacular,Aadhaar Enabled Payment Services(AEPS)based Cash-in-Cash-out(CICO)points for last-mile,UPI,Account Aggregator&TelCo based underwriting models,Bite-sized products India needs$100-120Bn investment in tech enablers(Critical&Emerging Tech and enterprise infr
192、a)enabled by research IPO markets to be bolstered through funding from Sovereign Wealth Funds(SWFs),global investors while Fintechs need to be IPO-ready to win capital India for the World:BFSI SaaS to be a$18Bn opportunity;Upto 50%earnings to be from export marketsThe Second Wave|Resilient,Inclusive
193、,Exponential Fintechs50The Fintech Nation10,000+Fintechs across the countrySource:Traxcn as of July 2023,BCG Analysis2.5KLadakhJammu&KashmirPunjabHaryanaChandigarhUttarakhandUttar PradeshRajasthanDelhiMadhya PradeshGujaratMaharashtraKarnatakaAndhra PradeshTelanganaChattisgarhOdishaBiharJharkhandWest
194、 BengalSikkimGoaTamil NaduKeralaLakshadweepPondicherryAndaman&Nicobar IslandsManipurNagalandArunachal PradeshAssam3911.1K2515207201.6K221xxNo.of Fintechs in the State/UTMeghalayaTripuraHimachal PradeshThe Second Wave|Resilient,Inclusive,Exponential Fintech
195、s51India case study:Journey to the Fintech Nation1.Global Fintech funding deals from 2020-June 2023 2.Unicorn strength as of Jun23 3.Digital Public InfrastructureSource:Tracxn data as of Jun23;BCG Fintech Control Tower data as of Jun23High Funding Activity and ScaleDeep and Diverse Fintech Ecosystem
196、Enabled by Best-in-Class DPI3Aadhaar,UPI,DigiLocker,GST,etc.In Deal Volume1 with 6%share of Global FundingIn number of Fintechs and number of unicorns2(at least 1 unicorn across all 6 Fintech segments)ONDC,CBDC,Agri stack,Health stack,Logistics stack,etc.DPI 1.0#3#3DPI 2.051The Second Wave|Resilient
197、,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs52Indian Fintechs to achieve$190Bn in revenues by 20301.Digital Public InfrastructureNote:Banking and Banking FinTech revenues/valuations are excluding Insurance and InsurTech revenues/valuations respectivelySourc
198、e:Traxcn;Reimagining the Future of Finance-BCG QED Report 2023;Money Control;Trading View;Capital IQ;BCG AnalysisShare of Indian Banking Fintechs in Banking revenues to increase to 20%+by 2030Share of Banking Fintech revenues in total Banking revenues2030203020222022$16Bn$220-250Bn$50-60Bn$170-190Bn
199、Revenue upside with DPI exportsIndian Banking Fintech revenues as%of Indian Banking revenuesGlobal Banking Fintech revenues as%of Global Banking revenuesProjected Revenue35-40%5%20%+5%13%Indian Fintechs set to generate$190Bn annual revenues by 2030,additional upside of$60Bn with DPI1 exports to the
200、worldIndia Fintech Revenues 2030 ProjectionIndia RevenueIndia is positioned to be an exemplar for Fintech innovation globally.Our robust Digital Public Infrastructure with potentially increased investments in Critical and Emerging Technologies can drive breakout growth.Export of Indias Digital Publi
201、c Infrastructure to other emerging nations can enable Indian players capture an upside of$50-60Bn in revenues.Vipin VManaging Director&Partner,BCGIndian Banking Fintechs to contribute 25%+of Indian Banking valuationsThe Second Wave|Resilient,Inclusive,Exponential Fintechs53DPI 1.0 laid the foundatio
202、ns of a strong Fintech ecosystem;DPI 2.0 to drive the next wave of growthDPI 2.0DPI 1.0Open Network for Digital CommerceCentral Bank Digital CurrencyOpen Credit Enablement NetworkAccount Aggregatorand moreDigiLockerGoods&Services Tax(GST)AadhaarUPINational Health StackNational Agri StackNational Log
203、istics Stackand moreSource:BCG AnalysisDPI 1.0(Aadhaar stack,UPI,etc.)revolutionized Indias financial landscape,ushering in an era of innovation and inclusion.The volume of 10,000 UPI transactions per second is a testament to that.DPI 2.0(ONDC,CBDC,Health Stack,Agri Stack etc.)will drive the next wa
204、ve of innovation across sectors.For example,OCEN has the potential to revolutionize the credit landscape.We are at the cusp of an inflection point,and poised for breakout growth.Tirtha ChatterjeeProject Leader,BCGDeep-Dive53The Second Wave|Resilient,Inclusive,Exponential FintechsThe Second Wave|Resi
205、lient,Inclusive,Exponential Fintechs54ONDC to democratize commerce in India;large opportunity for Financial ServicesSource:BCG Interview with T Koshy,other industry leaders;BCG AnalysisThere is increasing participation from merchants,consumer side apps,logistics providers,and others on the network-r
206、esulting in a surge in transactions.Its like different pieces of a puzzle coming together.Various schemes are being launched by institutions like NABARD,SIDBI,etc.to provide handholding support to their ecosystem.Eventually,every seller will want to be on the network-ONDC will become as ubiquitous a
207、s a webpage.ONDC is an unprecedented opportunity for Fintechs and financial services.Were in the process of launching frameworks and technical specifications to enable financial products on an open network.Further,ONDC can enable flow-based lending and sachetized insurance based on the digital footp
208、rint and verifiable credentials.For example,with the consent of a business,a fintech firm can provide hyper-personalized financing products and working capital by using digitally verifiable data such as sales,order books and growth patterns.There are three key imperatives for the financial ecosystem
209、 to benefit from ONDC-Banks,NBFCs,Fintechs and advisors need to prepare a 5 year roadmap Financial Services players can then enable onboarding of their consumer and merchant networks onto ONDC They can also define certification standards for the sellers thereby increasing their credibilityONDC is an
210、 open communications protocol that democratizes e-commerce ONDC connects various e-commerce participants through open and standard protocols*It enables sellers to have a digital presence irrespective of their size or location,and offers buyers a larger choice of products/services ONDC daily transact
211、ions(100K-150K/day)on a faster trajectory than UPI and is now at a pivotal juncture ready for expansionSellersBuyersProduct DiscoveryPaymentsOrder TrackingReturns&RefundsLogisticsReverse LogisticsReviews&RatingsDispute ResolutionSeller1Seller2Seller3Seller4Groceries AppDining AppFashion AppONDCONDC
212、CEOT KoshyThe Second Wave|Resilient,Inclusive,Exponential Fintechs5555The Second Wave|Resilient,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs56India needs to catch-up on 4 areas in journey to The Fintech Nation1.Ayushman-blessed to have a long lifePowering fi
213、nance for rural IndiaUnlocking access and usage through Fintech innovations for the undeservedFintechs for all Indians01Addressing$100-120Bn funding gap in tech enablersFunding for tech enabler investments to be unlocked through researchInvest in Tech Enablers02Making Fintechsfinancially viablePrepa
214、ring Fintechs for IPO and attracting capital simultaneouslyAyushman1 Fintechs03Globalizing Indian innovation in FintechsExporting Indian BFSI SaaS products at scaleIndia for the World0456The Second Wave|Resilient,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs5
215、7Fintechs for All Indians|Unlocking the untapped Bharat1 opportunity through Fintech innovation1.Bharat refers to Tier 2 regions and below 2.App size as on Aug 9,23 3.Aadhaar Enabled Payment Services 4.Cash-in-Cash-out 5.Account Aggregator 6.Q:Borrowed any money from a formal financial institution o
216、r using a mobile money account(%age 15+)7.Q:Saved at a financial institution(%age 15+)Source:Opencellid open database of cell towers(2017),BCG Gamma Geoanalytics;Google Play Store;GSMA-The Mobile Gender Report 2022;CICO Access Geo-Analysis in India;Spice Money Website;Findex Survey 2021;MooPay Websi
217、te;BharatBank WebsiteUnlocking AccessUnlocking UsageFor low network coverage areasFor affordabilityFor increasing credit penetrationFor last-mile banking accessDigitalAccessPhysical(Cash)AccessInvestmentsCreditInsuranceLite AppsUPI,AA5,TelCo-based underwriting modelsBite-Sized ProductsAEPS3 CICO4 Po
218、intsFacebookMooPayBharatATMSpice MoneyFacebook Lite181MBMooScore for credit to dairy farmers basis milk quality&quantity11%interest on low ticket(100/month)recurring depositEnabling 1.5 Lac Cr.GTV through 12 Lac CICO points2MB2(Rural districts have 1/8th cell tower coverage vs.Urban/Metro)(Only 13%6
219、 formal credit penetration,UPI,AA,TelCos cover 100 Cr.population)(13%7 people have saved at a financial institution)(380 Mn people lack access to CICO points within 1 Km in urban,2.5 Km in rural areas)For addressing low literacy and digital skillsVoice-in-VernacularPhonePe11 Languages(Top barrier fo
220、r mobile internet use 30%)The Second Wave|Resilient,Inclusive,Exponential Fintechs58Invest in Tech Enablers|India needs to fill a$100-120Bn funding gap in Critical and Emerging Technologies(CET)by 20301.Gap calculated from 2013 to 2030.Gap for each year=India GDP*(funding/GDP%-India funding/GDP%).Fo
221、r 2023-2030 India Nominal GDP growth projected at 11%CAGR reaching$7.8Tn by 2030,projected funding/GDP%for both countries taken as that of 2022Source:World Bank Databank;Tracxn;BCG AnalysisIsrael29US453India9China710.23%0.05%0.68%0.03%Funding in tech enablers as a%of GDPIndia needs substantial priva
222、te and public investment in tech enablersTech enablers include:Critical&Emerging Tech(AI,Blockchain,IoT,Quantum computing,etc.)Enterprise Infra(IT Ops,Data centers,Cloud,API,ERP,etc.)Total funding into tech enablers from 2013-2022($Bn)$100-120Bn1 investment required in CETThe Second Wave|Resilient,I
223、nclusive,Exponential Fintechs59Invest in Tech Enablers|Fostering investment in research to kickstart CET funding in India1.Research&Development Expenditure Credit Under this scheme UK companies can claim a pre-tax credit of 11%and redeem against tax liability or in cashNote:Higher research output(AI
224、,Blockchain,Quantum computing)attracts higher funding in CET(R2=0.5 to 0.8)Source:SCImago;UK Finance Act;business.gov.nl;BCG AnalysisIndia ranks behind many developed ecosystems on research outputImperatives for the financial ecosystem to boost research in Critical and Emerging TechnologiesCountry-w
225、ise(top 50)H-index in Computer Science(AI,networks and communications,hardware&software,information systems,etc.)Tax incentives for R&D in Critical and Emerging Technologiese.g.,200%deduction on bio-tech research pre-2017,11%credit in UK under RDEC1Tax exemptions on sale of innovative productse.g.,D
226、utch Innovation Box offers 60-70%tax benefit on profit derived from innovationEnable commercialization of university researche.g.,Legend computers(Lenovo)was spun off from the Chinese Academy of Sciences552242842342932862837737337235033142112031
227、8241188161160 91201,310United StatesCanadaMexicoFranceGermanySwitzerlandNetherlandsItalySpainSwedenDenmarkGreeceNorwayChinaHong KongBelgiumFinlandAustriaPortugalIrelandAustraliaSingaporeJapanSouth KoreaIsraelIndiaTaiwanTurkeyIranMalaysiaNew ZealandSaudi ArabiaRussiaP
228、akistanUnited Arab EmiratesQatarThailandBrazilCzech RepublicNorth America Avg 682Western Europe Avg 368Asia/Oceania Avg 274South America/Eastern Europe/Africa Avg 169MacaoJordanPolandChileHungarySouth AfricaEgyptSloveniaRpmaniaColumbiaUnited KingdomNorth AmericaWestern EuropeAsia/OceaniaSouth Americ
229、a/Eastern Europe/AfricaThe Second Wave|Resilient,Inclusive,Exponential Fintechs60Ayushman1 Fintechs|Conservatively,BFSI public offering expected to raise$25-30Bn in next 6 yearsBFSI public offerings(IPOs/FPOs/Rights Issues)in India by offered amount-2016-2022($Bn)1.Ayushman-blessed to have a long li
230、fe 2.Repo rate was 4%from 22 May 2020 to 03 May 2022(lowest since 2000)3.HDFC Standard Life($1.1Bn),SBI Life($1.0Bn),New India Assurance($1.2Bn),General Insurance Corporation($1.4Bn),ICICI Lombard General($0.7Bn)4.Paytm IPO size=$2.2Bn 5.LIC IPO Size=$2.6Bn 6.CAGR 16 to 22=12%Note:USD to INR exchang
231、e rate=82Source:NSE;BCG AnalysisLow interest rate environment2IPORights IssueFPO1720161.720182.220190.320223.2No.of public offerings20201.81.74.10.620215.55.90.45.96.420170.4Likely to be available in next 6 years considering 2022 public offer level and conservative CAGR of 12%6$25-30BnAvg.$3.4Bn5 In
232、surance IPOs3Includes Paytm4Includes LIC514847137The Second Wave|Resilient,Inclusive,Exponential Fintechs611.Ayushman-blessed to have a long life 2.Unlisted Fintech unicorns considered i.e 22 unicorns with latest cumulative valuation of$66Bn as of Jul 23 3.Do you expect to take a valuation hit for r
233、aising money in the next rounds considering the current investment climate?N=33 4.Three exit scenarios considered:Uniform(33%every 2 years),Front-Loaded(50%till Year 2,80%till Year 4,and 100%till Year 6),and Bell-shaped(25%till Year 2,75%till Year 4,and 100%till Year 6)Source:Capital IQ;Tracxn data
234、as of Jul23;NSE;The Global Fintech Union Survey 2023 by BCG&GFF;BCG AnalysisAyushman1 Fintechs|$40-50Bn capital required for Fintech unicorns to IPO in next 6 yearsExpected ValuationHaircut(%)Projected valuation growth(%,CAGR)Most Likely Outcomes28%higher funding in 2021 and 2022 leading to over-val
235、uation13%(18-23 India public FS market growth)(Projected Fintech valuation growth till 2030)(20-23 India Fintech valuation growth)$18-20Bn$21-23Bn$24-26Bn$28-30Bn$26-30Bn$31-35Bn$35-40Bn$39-45Bn$36-43Bn$42-50Bn$48-57Bn$54-64Bn40%30%20%10%24%34%Analysis based on reasonably conservative assumptionsCap
236、ital required for FinTech IPOs4($Bn)30%dilution at the time of IPO03Haircut on latest available valuation02 40%Fintech founders expecting valuation drop36 years from acquiring unicorn status to IPO Only current 22 unicorns2 will IPO in next 6 years No non-Fintech BFSI IPO in next 6 years01The Second
237、 Wave|Resilient,Inclusive,Exponential Fintechs62Ayushman1 Fintechs|India needs to enhance capital availability for deficient IPO capital marketsProjected conservative demandProjected reasonable supplyV/S1.Ayushman-blessed to have a long life 2.Drop from listing price-Paytm(60%),Policybazaar(26%)and
238、Fino Payments Bank(38%)3.As on 11 Aug 23 4.High Net Worth(HNW)-Wealth between$1Mn and$100Mn;Ultra High Net Worth(UHNW)-Wealth greater than$100MnSource:Moneycontrol;Trendlyne;NBIM;MAS;Livemint Article;BCG AnalysisCautious capital due to negative performance of recent Fintech IPOs2(26-60%under listing
239、 price3)$40-50BnRequired for IPOs of Indian Fintech unicorns over next 6 years$25-30BnLikely to be available considering BFSI IPO trendsGIC Singapore($7.5Bn),Norway SWF($4.5Bn)have large holdings in Indian BFSI equitiesBuild focused$10-15Bn Sovereign Wealth Fund(SWF)Tax exemption in Singapore for fa
240、mily offices on designated investments including listed equitiesIncentivize family offices/HNW/UHNW4 to invest in IPOsUS,UK do not charge capital gains to foreign investors on public equitiesDiscontinue capital gains tax for foreign investorsMeaningful gap between capital demand and supply for Finte
241、ch IPOsIndian financial ecosystem needs to focus on building larger capital poolIt is not obvious,as per current market conditions,that India has sufficient market depth for all 22 Fintech unicorns to go public in next 6 years.They will need to compete for IPO capital.Hence,it will be critical for F
242、intechs to demonstrate financial viability and IPO readiness.Vikram KhannaPrincipal,BCGThe Second Wave|Resilient,Inclusive,Exponential Fintechs63Ayushman1 Fintechs|Founders must ensure financial viability and IPO readiness1.Ayushman-blessed to have a long life 2.Two scenarios likely to emerge basis
243、capital availability a.Capital markets follow past trends leading to deficiency-Fintechs would have to compete for IPO capital or b.Sufficient but cautious capital is available for Fintech IPOs-Fintechs will have to be investable at a higher cautious hurdle rateSource:BCG IPO Readiness Checklist Do
244、we have an equity story to educate the market?Is our capital structure optimal?How do we develop a dividend policy?Can we prepare financial reports in a timely manner?Can we prepare financial reports on segment level?Can we comply to all disclosure requirements?Do we have any unresolved disputes?Do
245、we have the right governance structure?Do we have enough independent board members?Do we have all the required committees?Do we comply with control system requirements?Do we have required capabilities?Is our IT system ready for reporting requirements?Do we have a variable compensation scheme?Do we h
246、ave enough resources for the IPO process?Are government regulations in our favor?Can they be influenced?What regulatory changes need to occur?ABCDEStrategic and Financial Readiness463428284Reporting&Compliance ReadinessGovernance ReadinessCorporateReadinessGovernment ReadinessInternalReadinessExtern
247、alReadiness140 item BCG checklist across 5 key areas for Fintechs to be IPO ready in two capital availability scenarios2Number of Checklist ItemsTotal:140XXThe Second Wave|Resilient,Inclusive,Exponential Fintechs64India for the World|Indian Financial Infra seeing green-shoots from BFSI SaaS players;
248、$18Bn revenues by 2030,50%of revenues from exports1.Others:Includes Digital Payments,Lending,Wealthtech,InsurTech&Neo Banks&PFMSource:IDC;Gartner;SaaSBoomi;NASSCOM;BCG Case Experience;BCG Analysis Indias Financial Infra highly mature and scalable to support the exponential digitization needs of the
249、world(e.g.,Real-time digital transactions in India more than US,China and Europe combined)Two archetypes emerging in India for BFSI SaaS enabling the digitization needs of the world*Core platform providers across segments*X.SP Tech service providers to cater to international markets$18Bn44%35%India
250、BFSI SaaS revenue by 2030BFSI SaaS will grow faster than other Fintech segments50%+likely to come from exportsSplit of Indian Fintech revenue(%)BFSI SaaSOthers12022 6%10%203090%94%$16Bn$170-190BnCAGR 22-30The Second Wave|Resilient,Inclusive,Exponential Fintechs6565The Second Wave|Resilient,Inclusive
251、,Exponential Fintechs66The Second Wave|Resilient,Inclusive,Exponential FintechsAcknowledgementsThis report is a joint initiative of Boston Consulting Group(BCG)and Global Fintech Fest(GFF).The authors would like to thank the members of BCG and GFF for their contributions to the development and produ
252、ction of the report.We thank all the participants of the Survey Voice of the leaders of financial ecosystem,1-on-1 discussions and panel discussions for their valuable contributions towards the enrichment of the report.In addition,the authors are extremely grateful to the following leaders for their
253、 guidance and inputs through 1-on-1 discussions:The authors would also like to thank BCG teams for their valuable contributions to this report.In particular,they thank analysts from the Knowledge Team,the Fintech Control Tower Team,the Editorial,PR,Marketing,and Design teams.We also extend our appre
254、ciation to Eshaan Aggarwal,Gaurav Chopra,Jagesh Golwala,Jasmin Pithawala,Kushagra Agrawal,Nadir Kanthawala,Nopur N,Preetha Kumaresan,Saroj Singh,Saurabh Tikekar,Seshachalam Marella,Subhradeep Basu,Sujatha Moraes,Suniet Bezbaroowa,and Vaishnavi Sinha for their contributions.Alpesh ShahManaging Direct
255、or and Senior Partner,Boston Consulting GroupAniruddha MaratheManaging Director and Partner,Boston Consulting GroupAnish AchuthanCEO,OpenAnurag SinhaCo-Founder,OneCardAshish KaranEx-Director,Carlyle GroupDilip AsbeMD and CEO,National Payments Corporation of IndiaKunal JhanjiManaging Director and Par
256、tner,Boston Consulting GroupMark WisemanChairman,The Alberta Investment Management CorporationT KoshyCEO,ONDCShashvat NakraniFounder,BharatPeSujith NarayananCo-Founder,FiSumit KumarManaging Director and Partner,Boston Consulting GroupMayank JhaManaging Director and Partner,Boston Consulting GroupMit
257、en SampatCREDNavin SuryaChairman,Fintech Convergence CouncilPrashant SwaminathanPartner,Woodtsock FundShailesh BaidwanMaya Group President and Maya Bank Co-FounderRahul KothariCBO,RazorpayRuchin GoyalManaging Director and Senior Partner,Boston Consulting GroupSandeep JhingranDirector,Fintech Converg
258、ence CouncilNote:All the names are in alphabetical orderThe Second Wave|Resilient,Inclusive,Exponential Fintechs67AuthorsGlobal Practice Leader Financial Institutions,Managing Director&Senior Partner,BCGTripathi.SSaurabh TripathiAPAC Fintech Lead,Managing Director&Partner,BCGErande.YYashraj ErandeIn
259、dia Fintech Lead,Managing Director&Partner,BCGChitkara.NNeetu ChitkaraManaging Director&Partner,BCGMandhata.VVivek MandhataManaging Director&Partner,BCGV.VVipin VPrincipal,BCGKhanna.VVikram KhannaSenior Associate,BCGKacholia.AAviral KacholiaProject Leader,BCGChatterjee.TTirtha ChatterjeeConsultant,B
260、CGHarnathka.SSarthak HarnathkaIf you would like to discuss the themes and content of this report,please contact:67The Second Wave|Resilient,Inclusive,Exponential FintechsThe Second Wave|Resilient,Inclusive,Exponential Fintechs68DisclaimerThis document has been prepared in good faith on the basis of
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